TIDMCCZ
RNS Number : 2665H
Castillo Copper Limited
26 July 2023
26 July 2023
CASTILLO COPPER LIMITED
("Castillo", or the "Company")
June 2023 Quarterly Activities Report
Castillo Copper Limited (LSE and ASX: CCZ), a base metal
explorer primarily focused on copper across Australia and Zambia,
is pleased to present shareholders its latest quarterly report for
the period 1 April to 30 June 2023.
HIGHLIGHTS:
-- EAST ZONE, BHA PROJECT, NSW
o Specialist, consultant, ANSTO, performed metallurgical
test-work on six samples from the Fence Gossan, Reefs and Tors
Tanks Prospects(1)
o The Total Rare Earth Element plus Yttrium ("TREY") grades for
the six samples ranged from 227 to 1,632 ppm TREY(1)
DEVELOPMENT WORK
Castillo has four properties comprising the NWQ Copper Project
in Mt Isa's copper-belt, the BHA Project near Broken Hill's world
class silver-zinc-lead deposit in NSW, the historic Cangai Copper
Mine and four assets across Zambia's copper-belt.
East Zone, BHA Project, NSW
On 13 April 2023, specialist consultant, ANSTO, was appointed to
undertake comprehensive metallurgical test-work on six samples from
Fence Gossan, Reefs and Tors Tanks Prospects to understand the
potential to extract rare earth elements ("REE") from shallow clay
zones.
The scope of work will focus on characterising REE leachability
from the six samples which comprise fresh pegmatite to highly
weathered clay, especially with Magnetic Rare Earth Oxide ("MREO")
grades ranging from 362-603ppm.
This is an important step towards advancing the viability of the
BHA Project's East Zone REE potential and securing interest from
prospective development partners, especially given the extent of
high-value MREO (Nd+Pr+Dy+Tb) within the system(1) .
On 14 June 2023, specialist consultant, ANSTO, performed
metallurgical test-work on six samples from the Fence Gossan,
Reefs, and Tors Tanks Prospects which produced the following
preliminary findings:
-- The Total Rare Earth Element plus Yttrium grades for the six
samples ranged from 227 to 1,632 ppm TREY;
-- The proportion of high-value Magnetic Rare Earth Oxides
(MREO; Nd+Pr+Dy+Tb) to Total REO (TREO) across the six samples
ranged from 22% to 27%; and
-- The best TREY extraction, using a direct leach process at pH 1, was 30%
The Board is reviewing next steps, including trialling alternate
leach tests proposed by ANSTO to improve extraction results(1)
.
PAYMENTS TO, OR TO AN ASSOCIATE OF, A RELATED PARTY OF THE
ENTITY DURING QUARTER DURING THE QUARTER
$202,000 was paid to related parties of Castillo relating to
executive director salary, non-executive director fees and
exploration expenditure paid to Field Crew, a related entity of
director David Drakeley.
SUMMARY OF THE EXPLORATION EXPITURE INCURRED DURING THE
QUARTER
Consulting fees Rates and mines
departments fees
Cangai $96,000 -
----------------------- -----------------------------------------
Broken Hill Alliance $28,000 $1,000
----------------------- -----------------------------------------
Mt Isa $77,000 $38,000
----------------------- -----------------------------------------
Zambia $27,000 $1,000
----------------------- -----------------------------------------
Total $228,000 $40,000
----------------------- -----------------------------------------
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Dr Dennis Jensen (Australia), Managing Director
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and
Corporate Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold and platinoids.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker
"CCZ."
References
1) Note - All information referenced is from CCZ ASX Releases,
as dated in text, from 1 January 2022 to 28 April 2022
inclusive
APPIX A: KEY PROJECTS
FIGURE A1: WEST AND EAST ZONE - BHA PROJECT, BROKEN HILL
REGION
Source: CCZ geology team
FIGURE A2: ZAMBIA COPPER-BELT PROJECTS
Source: CCZ geology team
FIGURE A3: NWQ COPPER PROJECT, MT ISA REGION
Source: CCZ geology team
APPIX B: INTEREST IN MINING TENEMENTS HELD
JACKADERRY (CANGAI)
New England Orogen in NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
------------------------------ ---------------------------- --------------------------
EL8635 100% 100% -
------------------------------ ---------------------------- --------------------------
EL8625 100% 100% -
------------------------------ ---------------------------- --------------------------
EL8601 100% 100% -
------------------------------ ---------------------------- --------------------------
BROKEN HILL
located within a 20km radius of Broken Hill, NSW
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
------------------------------ ---------------------------- --------------------------
EL8599 100% 100% -
------------------------------ ---------------------------- --------------------------
EL8572 100% 100% -
------------------------------ ---------------------------- --------------------------
EL 8434 100% 100% -
------------------------------ ---------------------------- --------------------------
EL 8435 100% 100% -
------------------------------ ---------------------------- --------------------------
MT OXIDE
Mt Isa region, northwest Queensland
Tenement ID Ownership at start of Quarter Ownership at end of Quarter Change during the Quarter
------------------------------ ---------------------------- --------------------------
EPM 26513 100% 100% -
------------------------------ ---------------------------- --------------------------
EPM 26525 100% 100% -
------------------------------ ---------------------------- --------------------------
EPM 26574 100% 100% -
------------------------------ ---------------------------- --------------------------
EPM 26462 100% 100% -
------------------------------ ---------------------------- --------------------------
EPM 27440 100% 100% -
------------------------------ ---------------------------- --------------------------
ZAMBIA
Project Tenement ID Ownership at start of Ownership at end of Quarter Change during the Quarter
Quarter
-------------- --------------------------- ---------------------------- --------------------------
Lumwana North 23914-HQ-SEL 100% nil 100%
-------------- --------------------------- ---------------------------- --------------------------
Lumwana South 23913-HQ-SEL 100% nil 100%
-------------- --------------------------- ---------------------------- --------------------------
Mkushi 24659-HQ-LEL 100% 100% -
-------------- --------------------------- ---------------------------- --------------------------
Luanshya * 22448-HQ-LEL - - -
-------------- --------------------------- ---------------------------- --------------------------
Luanshya 25195-HQ-LEL 55% 55% -
-------------- --------------------------- ---------------------------- --------------------------
Luanshya 25273-HQ-LEL 55% 55% -
-------------- --------------------------- ---------------------------- --------------------------
Mwansa 25261-HQ-LEL 100% 100% -
-------------- --------------------------- ---------------------------- --------------------------
* CCZ can earn up to 80% by meeting previously disclosed milestones
The mining tenement interests relinquished during the quarter
and their location
-- Lumwana North 23914-HQ-SEL Zambia
-- Lumwana South 23913-HQ-SEL Zambia
-- Luanshya (1) 22448-HQ-LEL Zambia
(1) CCZs right to earn up to 80% by meeting previously disclosed
milestones lapsed during the quarter.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
-----------------------------------------------------
Castillo Copper Ltd
ABN Quarter ended ("current quarter")
--------------- ----------------------------------
52 137 606 476 30 June 2023
----------------------------------
Consolidated statement of cash flows Current quarter Year to date
(12 months)
$A'000 $A'000
1. Cash flows from operating
activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) staff costs
(e) administration and corporate
costs (192) (1,067)
1.3 Dividends received (see note
3)
1.4 Interest received 8 18
1.5 Interest and other costs of
finance paid
1.6 Income taxes paid
1.7 Government grants and tax
incentives
1.8 Other (provide details if
material)
---------------- -------------
Net cash from / (used in)
1.9 operating activities (184) (1,049)
----------------- ----------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) exploration & evaluation (268) (1,722)
(e) investments
(f) other non-current assets - (82)
2.2 Proceeds from the disposal
of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets
2.3 Cash flows from loans to other
entities
2.4 Dividends received (see note
3)
2.5 Other (provide details if
material)
---------------- -------------
Net cash from / (used in)
2.6 investing activities (268) (1,804)
----------------- ----------------------------------- ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of equity
securities (excluding convertible
debt securities)
3.2 Proceeds from issue of convertible
debt securities
3.3 Proceeds from exercise of
options
3.4 Transaction costs related
to issues of equity securities
or convertible debt securities
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related
to loans and borrowings
3.8 Dividends paid
3.9 Other (provide details if
material)
---------------- -------------
3.10 Net cash from / (used in) - -
financing activities
----------------- ----------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 3,332 5,754
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (184) (1,049)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (268) (1,804)
4.4 Net cash from / (used in) - -
financing activities (item
3.10 above)
Effect of movement in exchange
4.5 rates on cash held 20 (1)
---------------- -------------
Cash and cash equivalents
4.6 at end of period 2,900 2,900
----------------- ----------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 2,808 3,240
5.2 Call deposits 92 92
5.3 Bank overdrafts
5.4 Other (provide details)
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 2,900 3,332
----------------- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 51(1)
----------------
6.2 Aggregate amount of payments to related 151(2)
parties and their associates included in
item 2
----------------
(1) Comprises director's fees for the quarter.
(2) Comprises consulting fees paid to the Managing Director
and exploration expenditure paid to Field Crew, a related entity
of director David Drakeley.
7. Financing facilities Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity. Add notes as necessary
for an understanding of the
sources of finance available
to the entity.
7.1 Loan facilities
------------------- ----------------
7.2 Credit standby arrangements
------------------- ----------------
7.3 Other (please specify)
------------------- ----------------
7.4 Total financing facilities
------------------- ----------------
7.5 Unused financing facilities available at
quarter end
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
----------------- ---------------------------------------------------------------------------
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (item 1.9) (184)
8.2 (Payments for exploration & evaluation classified (268)
as investing activities) (item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item (452)
8.2)
8.4 Cash and cash equivalents at quarter end 2,900
(item 4.6)
8.5 Unused finance facilities available at quarter
end (item 7.5)
-------
8.6 Total available funding (item 8.4 + item 2,900
8.5)
-------
Estimated quarters of funding available
8.7 (item 8.6 divided by item 8.3) 6.4
-------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
8.8 If item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
-------------------------------------------------------------------
Answer: N/A
-------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of
questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
----------------- -------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 25 July 2023
Authorised by: The Board of Directors
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
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